Judgment collection services in Homer do several things to collect a debt.
If there is an outstanding debt, there’s a good chance judgment collection services will come into play. An outstanding debt exists because the debtor refuses or cannot pay the money owed to another. As a result, the debt collection process begins. If the basic debt collection strategies fail, legal action may occur. If the creditor is successful in its legal efforts, then it will have a judgment in its favor. From there, it can begin to collect on the decision. But what exactly does judgment collection services in Homer entail? Read on to find out.
Deciding What to Collect
In a perfect world, the debtor will have this huge bank account that has more than enough money to pay the judgment amount. And not only will the account have plenty of money, but the debtor will also readily agree to use that money to satisfy the judgment. But the real world doesn’t work this way. One of the reasons is that a judgment collection service will not know about this big bank account. Another reason is that even if it did, the debtor would take steps to make it impossible to get the money.
So in many situations, the judgment collection agency has to figure out what to collect. This can take two steps. First, it needs to find out what the debtor has. Using the above example, the debtor might have an offshore bank account with plenty of money in it. But a judgment collector can’t go after it if it doesn’t know it exists. So a collector will need to investigate to find out what the debtor has that might satisfy the debt.
Second, the judgment collector must decide if it can go after the asset. If the debtor has an offshore account, the collector may not always be able to access it. Perhaps some laws prevent it. It’s not like a judgment collector can fly to the bank, explain the situation, then walk out with the money. The bank will rightfully want to confirm what’s going on and even if it can, it may not have to hand over the cash unless certain legal conditions exist. And in some cases, the collector will not be able to satisfy those legal conditions.
Completing the Collection Process
After a judgment collector identifies what it can collect and decides it can obtain it, it must take the necessary steps to get the money. This can require filing certain documents with the court or other government entity. This can occur when getting a lien. It also might also require the judgment collector to seize the property, then sell it. This is what happens with a levy. Lastly, it might need to ask an employer to deduct some of the debtor’s wages and send that money to the collector. This is an example of wage garnishment.